Pollution Research and Control Enters Joint Venture to Monitor Air Pollution in Hundreds of Chinese Cities.

Business Editors, Environmental Writers

GLENDALE, Calif.--(BUSINESS WIRE)--May 4, 2000

Pollution Research and Control Corporation (Nasdaq:PRCC) announced today that its Board of Directors has approved a letter of intent and related proposal guidelines pertaining to a joint venture project for manufacturing and marketing air pollution monitoring systems in China.

The joint venture encompasses four hundred to six hundred Chinese cities.

"This joint venture is a magnificent milestone, and validates the Company's 1998 decision to focus sales primarily in China," stated A. E. Gosselin, Jr., President and CEO. "The recently awarded $13.5 million contract covering thirty-three cities should produce sustained quarterly sales and earnings over twelve to fourteen months beginning in the third quarter of this year. Joint venture revenue is anticipated by both China and the Company to begin twelve to fourteen months from today. This combination should definitely end sporadic sales and earnings performance."(a)

Mr. Gosselin added, "We expect to be working with a prestigious and experienced instrument manufacturing company in Beijing, China. The State Environmental Protection Agency (SEPA) has indicated that they are anxious for the joint venture contract signing, with transfer of technology to begin before the end of this year. We estimate saving more than 53% in manufacturing costs through this partnership. Assuming the manufacture and sale of monitoring equipment to a planned minimum of four hundred cities over a foreseeable five year period, the joint venture should generate between $7 million to $9 million net profit per year to the Company."(b)

According to Qu Geping, chairman of the Environmental and Resources Protection Committee under the National People's Congress, China needs to spend $14 to $18 billion to combat air pollution (as described in China Daily, August 26, 1999.) A significant portion of this market relates to air pollution monitoring technology.

Pollution Research and Control Corporation, with approximately four million shares outstanding, primarily designs, manufactures and markets air pollution measurement instruments, nationally and internationally, through its wholly owned subsidiary Dasibi Environmental Corp.

(a) This paragraph contains forward-looking statements concerning the Company's future financial performance. The Company's actual results could vary significantly. Factors which could cause such results to vary include: (i) successful completion of financing for the contract(s), and (ii) continued stability of relations between the U.S. and China.

(b) This paragraph contains forward-looking statements concerning the execution of a letter of intent for the joint venture and the anticipated results of the venture. The Company's actual results could vary significantly. Factors which could cause such results to vary include: (i) the uncertainty of final negotiations for the joint venture contract, (ii) the continued stability of relations between the U.S. and China, and (iii) the uncertainties associated with working with a new partner located in a foreign country.